Indian dairy sector welcomes GST reforms, consumers to see price benefits

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The recent implementation of GST reforms has been welcomed by major players in the Indian dairy sector, with companies like Amul and Mother Dairy passing on the benefits directly to consumers.

Speaking from Anand, Amul Managing Director Jayen Mehta highlighted the impact of the reduced GST rates on the company's product portfolio. "Yesterday, the Prime Minister spoke about the impact of the GST reforms on the country. At Amul, we are very happy to inform that we have actually passed on the entire benefit of GST reduction to all our consumers. The reduction in GST on ghee from 12 per cent to 5 per cent, similarly in butter and cheese from 12 per cent to 5 per cent, and in ice creams from 18 per cent to 5 per cent, will bring a significant reduction in the prices of our products for consumers," Mehta said.

He further noted that the reforms are expected to benefit not only consumers but also millions of dairy producers in the long term. "With the increase in demand, it will see a benefit passing on to millions of our producers. We are thankful to the Government for these fantastic reforms which have made nutrition affordable to the masses and provided an ensured source of livelihood to millions of milk producers associated with the dairy industry," Mehta added.

Echoing similar sentiments, Mother Dairy Managing Director Manish Bandlish said, "This is a very good step for both companies and consumers. Now, all our products have either come under a zero per cent or a five per cent slab. The implementation has been completed, and the consumer will benefit from it starting today. It is a very good step to increase consumption."

The GST rate reductions, which come into effect today, are part of broader government efforts to make essential commodities more affordable while stimulating demand in the economy.

Prime Minister Narendra Modi asserted on Sunday that the GST reforms kicking in from Monday will accelerate India's growth story, emphasising that it is a big and important step for "aatmanirbhar Bharat" and linking a boost to 'swadeshi' products to the country's prosperity.

Addressing the nation on the eve of the auspicious Navaratri, which will mark the implementation of the revised GST rates, Modi said swadeshi will render strength to the country's prosperity in a similar way it powered India's freedom movement.

"We have to make every home a symbol of swadeshi. We have to decorate every shop with swadeshi (goods)," he said.

The roll-out of next-generation GST reforms months after his government raised the income tax exemption on annual earnings of up to Rs 12 lakh will be a "double bonanza" for citizens, helping them realise their dreams by slashing expenditure and increasing savings, he said. Citizens will save Rs 2.5 lakh crore from the twin decisions, he said.

He urged states to boost manufacturing and create a conducive atmosphere for investment, saying that when the Centre and states work together, the dream of a self-reliant India will be realised.